EX-99.1 2 pressrel_ex99.htm
Exhibit 99.1
 
Contact Information:
 Investor Relations
941-556-2601
investor-relations@ropertech.com
Roper Technologies, Inc.




Roper Technologies Announces Record Financial Results
 

 
Sarasota, Florida, February 1, 2016 ... Roper Technologies, Inc. (NYSE: ROP), a diversified technology company, reported financial results for the fourth quarter and full year ended December 31, 2015.

Roper reports results – including revenue, operating margin, net income and diluted earnings per share – on a GAAP and adjusted basis.  Adjusted measures are reconciled to the corresponding GAAP measures at the end of this release.

Fourth Quarter 2015

Fourth quarter GAAP diluted earnings per share (DEPS) were $2.05 and adjusted diluted earnings per share were $1.82.  GAAP revenue was $944 million and adjusted revenue was $948 million. GAAP gross margin was 61.4% and adjusted gross margin increased 190 basis points to 61.8%.

GAAP operating margin was 29.5% and adjusted operating margin was 30.1%.  EBITDA margin was 35.9% for the quarter, a 60 basis point increase over last year.  Operating cash flow in the quarter was $269 million.

Full Year 2015

Full year GAAP diluted earnings per share increased 7% to $6.85 and adjusted diluted earnings per share were $6.68, a 4% increase over the prior year.  GAAP revenue was $3.58 billion and adjusted revenue was $3.59 billion, a 1% increase.  GAAP operating margin increased 50 basis points to 28.7% and adjusted operating margin was 29.0%, an 80 basis point increase over the prior year.  Full year EBITDA was $1.24 billion, or 34.6% of adjusted revenue.

Operating cash flow increased 11% to $929 million.  Free cash flow was $893 million, representing 25% of revenue.

"2015 was a record year for Roper," said Brian Jellison, Roper's Chairman, President and CEO.  "Growth in our medical, software and RF businesses offset a significant decline in energy markets and negative foreign exchange.  Our businesses executed well, driving an 11% increase in free cash flow. We successfully deployed $1.8 billion in strategic acquisitions during the year and are excited about our robust pipeline for 2016.  We expect to deploy over $1 billion in 2016, including the January acquisition of CliniSys Group, Ltd. which expands our global presence in software for hospital laboratories."
 
2016 Outlook and Guidance

Roper expects operating cash flow of approximately $1.0 billion.  "Our medical and software businesses will continue to lead our growth in 2016 and we expect an overall revenue increase of 8 - 10%, including 2 - 4 % organic growth, with strong operating leverage," Mr. Jellison added.

Roper expects 2016 full year adjusted diluted earnings per share (DEPS) between $6.85 and $7.15 with first quarter DEPS between $1.42 and $1.47.

The company's guidance excludes future acquisitions or divestitures.
 
Conference Call to be Held at 8:30 AM (ET) Today

A conference call to discuss these results has been scheduled for 8:30 AM ET on Monday, February 1, 2016.  The call can be accessed via webcast or by dialing +1 888-452-4023 (US/Canada) or +1 719-325-2420, using confirmation code 429015.  Webcast information and conference call materials will be made available in the Investors section of Roper's website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://www.webcaster4.com/Webcast/Page/866/12793.  Telephonic replays will be available for up to two weeks by calling +1 719-457-0820 and using the access code 429015.
 
Use of Non-GAAP Financial Information

The company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making.  Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables.  The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.

Table 1:  Revenue Growth Detail
   
2015
    
2014
      
V
%
Q4 GAAP Revenue
  
$
943.6
    
$
946.1
      
(0.3
%)
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
4.0
      
1.4
          
Q4 Adjusted Revenue
  
$
947.6
    
$
947.5
      
0.0
%
                         
Components of Adjusted Revenue Growth
                        
Organic
                    
(3.6
%)
Acquisitions
                    
6.0
%
Foreign Exchange
                    
(2.4
%)
Total Growth
                    
0.0
%
                         

 
Table 2:  Reconciliation of Q4 2015 GAAP DEPS to Adjusted DEPS
     
Q4 2015
      
Q4 2014
      
V
%
GAAP Diluted Earnings Per Share (DEPS)
  
$
2.05
    
$
1.84
      
11
%
Minus:  Gain on Sale of Divested Business
  
$
(0.33
)
    
--
          
Add:  Impairment Charge on Minority Investment
  
$
0.06
      
--
          
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
  
$
0.03
    
$
0.01
          
Add:  Acquisition-Related Inventory Step-up Charge
  
$
0.02
    
$
0.00
          
Rounding
  
$
(0.01
)
    
--
          
Adjusted DEPS
  
$
1.82
    
$
1.85
      
(2
%)
                         

 
Table 3:  Reconciliation of Full Year GAAP DEPS to Adjusted DEPS
   
FY 2015
    
FY 2014
      
V
%
GAAP Diluted Earnings Per Share (DEPS)
  
$
6.85
    
$
6.40
      
7
%
Minus:  Gain on Sale of Divested Business
  
$ 
(0.33
)
                
Add:  Impairment Charge on Minority Investment
  
$
0.06
                  
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
  
$
0.07
    
$
0.02
          
Add:  Acquisition-Related Inventory Step-up Charge
  
$
0.03
    
$
0.01
          
Rounding
    
--
    
$ 
(0.01
)
        
Adjusted DEPS
  
$
6.68
    
$
6.42
      
4
%
                         


Table 4:  2015 Full Year Adjusted Revenue and Adjusted Operating Margin Reconciliation
   
2015
    
2014
    
V% / V Bps
  
Full Year GAAP Revenue
  
$
3,582
    
$
3,549
      
+1
%
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
11
      
2
          
Rounding
    
--
      
1
          
Adjusted Revenue (A)
  
$
3,593
    
$
3,552
      
+1
%
                         
GAAP Operating Profit
  
$
1,028
    
$
999
          
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
11
      
2
          
Add:  Acquisition-Related Inventory Step-up Charge
    
5
      
1
          
Rounding
    
(1
)
    
1
          
Adjusted Operating (B)
    
1,043
      
1,003
          
                         
GAAP Operating Margin
    
28.7
%
    
28.2
%
  
+50 bps
  
                         
Adjusted Operating Margin (B) / (A)
    
29.0
%
    
28.2
%
  
+80 bps
  
                         



Table 5:  FY 2015 EBITDA  and EBITDA Margin Reconciliation

   
FY 2015
  
GAAP Revenue
  
$
3,582.4
  
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
10.6
  
Rounding
    
--
  
Adjusted Revenue (A)
  
$
3,593.0
  
         
GAAP Net Earnings
  
$
696.1
  
Add:  Taxes
    
306.3
  
Add:  Amortization
    
166.1
  
Add:  Interest Expense
    
84.2
  
Add:  Depreciation
    
38.2
  
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
10.6
  
Add:  Acquisition-Related Inventory Step-up Charge
    
4.6
  
Add:  Impairment Charge on Minority Investment
    
9.5
  
Less:  Gain on Disposal of a Business
    
(70.9
)
EBITDA (B)
    
1,244.7
  
         
EBITDA Margin (B) / (A)
    
34.6
%
         



Table 6:  Fourth Quarter Adjusted Revenue and Adjusted Operating Margin Reconciliation
   
2015
    
2014
  
Q4 GAAP Revenue
  
$
944
    
$
946
  
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
4
      
1
  
Rounding
    
--
      
1
  
Q4 Adjusted Revenue (A)
  
$
948
    
$
948
  
                 
Q4 GAAP Operating Profit
  
$
278.7
    
$
283.7
  
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
4.0
      
1.4
  
Add:  Acquisition-Related Inventory Step-up Charge
    
2.6
      
0.4
  
Rounding
    
--
      
0.1
  
Adjusted Operating Profit (B)
  
$
285.3
    
$
285.6
  
                 
GAAP Operating Margin
    
29.5
%
    
30.0
%
                 
Adjusted Operating Margin (B) / (A)
    
30.1
%
    
30.1
%



Table 7:  Fourth Quarter Adjusted Revenue and Adjusted Gross Margin Reconciliation
   
2015
    
2014
  
V bps
Q4 GAAP Revenue
  
$
944
    
$
946
    
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
4
      
1
    
Rounding
    
--
      
1
    
Q4 Adjusted Revenue (A)
  
$
948
    
$
948
    
                      
Q4 GAAP Gross Profit
  
$
579.1
    
$
565.7
    
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
    
4.0
      
1.4
    
Add:  Acquisition-Related Inventory Step-up Charge
    
2.6
      
0.4
    
Rounding
    
--
      
0.1
    
Adjusted Gross Profit (B)
  
$
585.7
    
$
567.6
    
                      
GAAP Gross Margin
    
61.4
%
    
59.8
%
+160 bps
                      
Adjusted Gross Margin (B) / (A)
    
61.8
%
    
59.9
%
+190 bps



 
Table 8:  Free Cash Flow Reconciliation
   
2015
    
2014
      
V
%
Operating Cash Flow
  
$
929
    
$
840
      
11
%
Less:  Capital Expenditures
    
(36
)
    
(38
)
        
Rounding
            
1
          
Free Cash Flow
  
$
893
    
$
803
      
11
%
 
 
About Roper Technologies

Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper designs and develops software (both software-as-a-service and licensed), and engineered products and solutions for healthcare, transportation, food, energy, water, education and other niche markets worldwide. Additional information about Roper is available on the company's website at www.ropertech.com.

The information provided in this press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations.  Forward-looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes," "intends" and similar words and phrases.  These statements reflect management's current beliefs and are not guarantees of future performance.  They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include our ability to integrate acquisitions and realize expected synergies.  We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions, changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, difficulties in making and integrating acquisitions, risks associated with newly acquired businesses, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, environmental compliance costs and liabilities, risks and cost associated with asbestos related litigation, potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products.  Important risks may be discussed in current and subsequent filings with the SEC.  You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

# # #
Roper Technologies, Inc. and Subsidiaries
        
Condensed Consolidated Balance Sheets (unaudited)
        
(Amounts in thousands)
        
   
December 31,
    
December 31,
  
ASSETS
  
2015
    
2014
  
         
CURRENT ASSETS:
        
  Cash and cash equivalents
  
$
778,511
    
$
610,430
  
  Accounts receivable
    
488,271
      
511,538
  
  Inventories
    
189,868
      
193,766
  
  Unbilled receivable
    
122,042
      
96,409
  
  Deferred taxes*
    
-
      
54,199
  
  Other current assets
    
39,355
      
45,763
  
    Total current assets
    
1,618,047
      
1,512,105
  
                 
PROPERTY, PLANT AND EQUIPMENT, NET
    
105,510
      
110,876
  
                 
OTHER ASSETS:
                
  Goodwill
    
5,824,726
      
4,710,691
  
  Other intangible assets, net
    
2,528,996
      
1,978,729
  
  Deferred taxes*
    
31,532
      
27,496
  
  Other assets
    
59,554
      
60,288
  
    Total other assets
    
8,444,808
      
6,777,204
  
                 
TOTAL ASSETS
  
$
10,168,365
    
$
8,400,185
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
  Accounts payable
  
$
139,737
    
$
143,847
  
  Accrued compensation
    
119,511
      
117,374
  
  Deferred revenue
    
267,030
      
190,953
  
  Other accrued liabilities
    
168,513
      
160,738
  
  Income taxes payable
    
18,532
      
-
  
  Deferred taxes*
    
-
      
3,943
  
  Current portion of long-term debt
    
6,805
      
11,092
  
    Total current liabilities
    
720,128
      
627,947
  
                 
NONCURRENT LIABILITIES:
                
  Long-term debt
    
3,264,417
      
2,190,282
  
  Deferred taxes*
    
810,856
      
735,826
  
  Other liabilities
    
74,017
      
90,770
  
    Total liabilities
    
4,869,418
      
3,644,825
  
                 
STOCKHOLDERS' EQUITY:
                
  Common stock
    
1,028
      
1,021
  
  Additional paid-in capital
    
1,419,262
      
1,325,338
  
  Retained earnings
    
4,110,530
      
3,520,201
  
  Accumulated other comprehensive earnings
    
(212,779
)
    
(71,927
)
  Treasury stock
    
(19,094
)
    
(19,273
)
    Total stockholders' equity
    
5,298,947
      
4,755,360
  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
10,168,365
    
$
8,400,185
  
                 
*In the fourth quarter of 2015, the Company adopted ASU 2015-17, which requires that deferred tax liabilities
  
and assets be classified as non-current in the consolidated balance sheet. The Company has chosen to
  
adopt this ASU on a prospective basis, therefore prior periods were not retrospectively adjusted.
  
 
 
Roper Technologies, Inc. and Subsidiaries
              
Condensed Consolidated Statements of Earnings (unaudited)
          
(Amounts in thousands, except per share data)
          
                 
                 
   
Three months ended
    
Twelve months ended
  
   
December 31,
    
December 31, 
  
   
2015
    
2014
    
2015
    
2014
  
                 
Net sales
  
$
943,640
    
$
946,145
    
$
3,582,395
    
$
3,549,494
  
Cost of sales
    
364,549
      
380,404
      
1,417,749
      
1,447,595
  
                                 
Gross profit
    
579,091
      
565,741
      
2,164,646
      
2,101,899
  
                                 
Selling, general and administrative expenses
    
300,414
      
281,992
      
1,136,728
      
1,102,426
  
                                 
Income from operations
    
278,677
      
283,749
      
1,027,918
      
999,473
  
                                 
Interest expense
    
23,843
      
19,285
      
84,225
      
78,637
  
Other income/(expense)
    
60,600
      
(422
)
    
58,652
      
620
  
                                 
Earnings from continuing operations before
                                
   income taxes
    
315,434
      
264,042
      
1,002,345
      
921,456
  
                                 
Income taxes
    
106,837
      
78,106
      
306,278
      
275,423
  
                                 
Net Earnings
  
$
208,597
    
$
185,936
    
$
696,067
    
$
646,033
  
                                 
                                 
                                 
                                 
                                 
Earnings per share:
                                
  Basic
  
$
2.07
    
$
1.86
    
$
6.92
    
$
6.47
  
  Diluted
  
$
2.05
    
$
1.84
    
$
6.85
    
$
6.40
  
                                 
Weighted average common and common
                                
  equivalent shares outstanding:
                                
    Basic
    
100,829
      
100,151
      
100,616
      
99,916
  
    Diluted
    
101,833
      
101,122
      
101,597
      
100,884
  
 
 
 
Roper Technologies, Inc. and Subsidiaries
                            
Selected Segment Financial Data (unaudited) 
                              
(Amounts in thousands and percents of net sales)
                              
                                 
                                 
   
Three months ended December 31,
    
Twelve months ended December 31,
  
   
2015 
    
2014 
    
2015 
    
2014 
  
   
Amount
    
%
    
Amount
    
%
    
Amount
    
%
    
Amount
    
%
  
Net sales:
                                
  Medical & Scientific Imaging
  
$
321,735
        
$
286,410
        
$
1,215,318
        
$
1,080,309
      
  RF Technology
    
281,883
          
240,084
          
1,033,951
          
950,227
      
  Industrial Technology
    
182,039
          
219,642
          
745,381
          
827,145
      
  Energy Systems & Controls
    
157,983
          
200,009
          
587,745
          
691,813
      
    Total
  
$
943,640
        
$
946,145
        
$
3,582,395
        
$
3,549,494
      
                                                 
                                                 
Gross profit:
                                                
  Medical & Scientific Imaging
  
$
238,804
      
74.2
%
  
$
206,669
      
72.2
%
  
$
899,775
      
74.0
%
  
$
779,407
      
72.1
%
  RF Technology
    
154,731
      
54.9
%
    
125,736
      
52.4
%
    
552,605
      
53.4
%
    
501,637
      
52.8
%
  Industrial Technology
    
89,842
      
49.4
%
    
111,104
      
50.6
%
    
370,894
      
49.8
%
    
417,568
      
50.5
%
  Energy Systems & Controls
    
95,714
      
60.6
%
    
122,232
      
61.1
%
    
341,372
      
58.1
%
    
403,287
      
58.3
%
    Total
  
$
579,091
      
61.4
%
  
$
565,741
      
59.8
%
  
$
2,164,646
      
60.4
%
  
$
2,101,899
      
59.2
%
                                                                 
                                                                 
Operating profit*:
                                                                
  Medical & Scientific Imaging
  
$
116,492
      
36.2
%
  
$
100,488
      
35.1
%
  
$
441,931
      
36.4
%
  
$
375,867
      
34.8
%
  RF Technology
    
83,591
      
29.7
%
    
67,994
      
28.3
%
    
312,112
      
30.2
%
    
271,177
      
28.5
%
  Industrial Technology
    
52,155
      
28.7
%
    
69,056
      
31.4
%
    
214,538
      
28.8
%
    
247,596
      
29.9
%
  Energy Systems & Controls
    
51,704
      
32.7
%
    
72,177
      
36.1
%
    
162,128
      
27.6
%
    
203,021
      
29.3
%
    Total
  
$
303,942
      
32.2
%
  
$
309,715
      
32.7
%
  
$
1,130,709
      
31.6
%
  
$
1,097,661
      
30.9
%
                                                                 
                                                                 
Net Orders:
                                                                
  Medical & Scientific Imaging
  
$
334,967
            
$
282,169
            
$
1,235,143
            
$
1,081,190
          
  RF Technology
    
273,856
              
242,295
              
1,024,999
              
955,831
          
  Industrial Technology
    
176,379
              
197,847
              
731,810
              
808,921
          
  Energy Systems & Controls
    
138,869
              
202,030
              
555,672
              
692,136
          
    Total
  
$
924,071
            
$
924,341
            
$
3,547,624
            
$
3,538,078
          
                                                                 
                                                                 
                                                                 
* Operating profit is before unallocated corporate general and administrative expenses. These expenses
                          
were $25,265 and $25,966 for the three months ended December 31, 2015 and 2014, respectively, and
                          
$102,791 and $98,188 for the twelve months ended December 31, 2015 and 2014, respectively.
                                  
 
 
 
Roper Technologies, Inc. and Subsidiaries
        
Condensed Consolidated Statements of Cash Flows (unaudited)
      
(Amounts in thousands)
        
         
         
   
Twelve months ended
  
   
December 31,
  
   
2015
    
2014
  
         
Net earnings
  
$
696,067
    
$
646,033
  
Non-cash items:
                
Depreciation
    
38,185
      
40,890
  
Amortization
    
166,076
      
156,394
  
Stock-based compensation expense
    
61,766
      
63,027
  
Gain on disposal of a business
    
(70,860
)
    
-
  
Income taxes
    
3,069
      
(46,619
)
Changes in assets and liabilities:
                
Receivables
    
30,753
      
(10,709
)
Inventory
    
(1,150
)
    
6,349
  
Accounts payable
    
(6,554
)
    
(5,070
)
Accrued liabilities
    
6,401
      
(15,385
)
Other, net
    
5,072
      
5,531
  
  Cash provided by operating activities
    
928,825
      
840,441
  
                 
Business acquisitions, net of cash acquired
    
(1,762,883
)
    
(305,379
)
Capital expenditures
    
(36,260
)
    
(37,644
)
Proceeds from disposal of a business
    
105,624
      
-
  
Other, net
    
(4,813
)
    
(5,082
)
  Cash used by investing activities
    
(1,698,332
)
    
(348,105
)
                 
Principal debt borrowings
    
900,000
      
-
  
Principal debt payments
    
(4,006
)
    
(561
)
Revolver borrowings (payments), net
    
180,000
      
(250,000
)
Debt issuance costs
    
(8,044
)
    
-
  
Dividends
    
(100,334
)
    
(79,859
)
Excess tax benefit from share-based payment
    
22,228
      
21,081
  
Proceeds from stock-based compensation, net
    
18,312
      
10,463
  
Redemption premium on convertible debt
    
(13,126
)
    
(1,518
)
Other, net
    
1,212
      
2,290
  
  Cash provided by (used in) financing activities
    
996,242
      
(298,104
)
                 
Effect of exchange rate changes on cash
    
(58,654
)
    
(43,522
)
                 
Net increase in cash and equivalents
    
168,081
      
150,710
  
Cash and equivalents, beginning of period
    
610,430
      
459,720
  
                 
Cash and equivalents, end of period
  
$
778,511
    
$
610,430